Startup advocates have expressed concern over government policies regarding unemployed foreign specialists in Finland. The proposed law would force foreign specialists to leave the country after six months if they fail to find a new job.
This policy would impact those living in Finland with a work-based residence permit. According to the proposal, people carrying non-specialist visas would have less time — three months — to find a new job.
"Although the government has given specialists three months more time than average workers to find a new job, six months is still relatively short," said Youssef Zad, Chief Economist of the Finnish Startup Community, an association of some 240 early stage businesses.
He pointed out that recruitments can take several months.
Many would have to leave
According to the Finnish Startup Community, Finland's small job marketplace is the main hurdle when it comes to finding a new job.
"Finland has such a small labour market that only a few companies are able to hire a specialist for particular high-level tasks. In many cases a specialist may simply have to leave Finland if the company decides to fire them," Zad explained.
The Finnish Startup Community says it wants to make Finland the best place for skilled workers and entrepreneurs. But, according to Zad, the planned law would make these objectives difficult to accomplish.
"If a worker knows that they may not be able to find a job fast enough after facing unemployment, they might go elsewhere where job opportunities are more readily available," Zad said.
Employers obligated to give notice
While Zad told Yle that similar constraints for staying in a country are also found elsewhere, Finland's proposal is stricter. What sets the Finnish legislative proposal apart, according to Zad, is that employers must immediately inform the Finnish Immigration Service (Migri) when a worker is terminated.
"This is a big deal. In practice, the law will have teeth. It will bite into the problem right away," Zad told Yle.
He also pointed out that under current rules a work-based residency expires when a permit-holder loses their job, but this is not actively enforced.
"A strict law will now be enacted and cause problems for many startup companies."
Social security no concern for specialists
Zad said he believes that the legislation and rhetoric around work-based immigration imply that foreign workers come to Finland to exploit the country’s social benefits system. However, according to Zad, this is not a factor for foreign specialists.
"They [foreign specialists] are not interested in social benefits. They are only interested in finding a new job in a timely manner," he said.
In Zad's view, Finland's reputation is also on the line.
"Finland must focus on how to attract the best workers and remain competitive. The focus should not be on finding new ways to kick workers out of the country," he said.
Legislation concerning the three-month rule and six-month exception for specialists is undergoing a consultation round this spring. The law is set to come before the legislature in the autumn, possibly entering into force at the beginning of next year.
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